| The old saying goes, "A few bad apples spoil the | | | | scheme, but with one difference. With a Ponzi scheme |
| bunch." It could not be more true when you are thinking | | | | there is not actually a product. The company promises |
| about getting into MLM. There are so many legitimate | | | | you large returns if you invest with them, but they only |
| opportunities that have been spoiled by some MLM | | | | take the investment to pay off the people who have |
| scams giving the business opportunity a bad name. | | | | been in the program longer. |
| Yes, there are legitimate MLM opportunities out there, | | | | With these type of MLM scams the promises sound |
| you just need to be able to tell the difference between | | | | legitimate, but the companies will most likely take your |
| the good businesses and the MLM scams. | | | | money and run. So what are the things you should |
| MLM is a legitimate business model, but some people | | | | look for to tell if you are dealing with one of those |
| have chosen to create MLM scams from this model. | | | | MLM scams? |
| You really can, with a lot of work, make good money | | | | First, ask if the company is more interested in bringing |
| with MLM, which is a multi-level marketing business | | | | in new members than selling any product. After all, |
| model. Also known as network marketing, you have | | | | new members mean more competition, especially if |
| an upline and build a downline while selling unique | | | | there are not a lot of products to sell. |
| services or products. The problem is, while this model | | | | Also, beware of companies that want you to |
| is legitmate, there are a lot of people creating MLM | | | | purchase a lot of product or inventory before you |
| scams and illegal schemes that have smeared the | | | | begin selling. MLM scams often require that you |
| MLM name. | | | | purchase items that are backordered, or you will |
| So, what are some common MLM scams? The most | | | | purchase the items and never see them. |
| popular MLM scam is very much illegal, and it is has | | | | MLM scams often make preposterous claims about |
| been around for the longest time. In a pyramid scheme, | | | | their products. The advertisements are extremely |
| a company will offer large profits if you invest in their | | | | exaggerated, and if the ads sound to good to be true, |
| program. Do you actually sell the products? No. This is | | | | they probably are. These exaggerations are most |
| one of those MLM scams where the money is paid in | | | | common with MLM scams that promote nutritional |
| without you ever seeing any money for the products. | | | | supplements. So check into them carefully. |
| Another one of the most common MLM scams is | | | | Read the rest of the article here: MLM Scams. |
| called a Ponzi scheme. This is similar to the pyramid | | | | |